The North-Western Karnataka Road Transport Corporation (NWKRTC), which has been incurring losses over the past several years, is said to be mulling monetising some of its real estate. Reportedly, the NWKRTC is in the process of getting additional revenue by renting out some of its unused or less-used buildings and open spaces.
The NWKRTC has been the public transport lifeline of Kittur-Karnataka region—the erstwhile Mumbai-Karnataka region that consisted of eight districts of Dharwad, Uttara Kannada, Belagavi, Vijayapura, Bagalkote, Gadag and Haveri—and plies in six districts with more than 4,800 buses in its operational fleet.
However, the NWKRTC has been experiencing revenue shortfall, especially with the two years of Covid-19 pandemic and the frequent hike in diesel prices having put additional burden.
Sources say that the corporation has come up with the initiative to generate additional non-transport revenue by renting out some of its buildings and open spaces. It is also intensifying its efforts to get advertisements on buses.
Prime location real estate up for rent
Most recently, the NWKRTC is said to have opened bids to rent out some of its properties on Gokul Road—one of the prime locations in Hubballi City. After Hubballi Rural Division Office, and other offices, were shifted to the building at the CBT, the NWKRTC has invited e-procurement applications from interested persons to take on rent a few buildings and open spaces on Gokul Road.
NWKRTC plans to get Rs 3.47 lakh monthly rent for its Samrat Garden Hall, Rs 3.70 lakh for the open space behind it, Rs 2.69 lakh for two floors of the old divisional office building, and Rs 2.71 lakh for the ground floor of the building in front of the NWKRTC Central Office.
Applications have also been invited to hold commercial activities at five open places in front of the New Bus Stand on Gokul Road, with the expectation of more than Rs 19 lakh monthly rent in total.
Tenancy required for unused spaces
NWKRTC managing director Bharath S told DH that efforts are being made to rent out 35 places across the region—these have been identified for renting out to petrol pumps—and tenders would be floated shortly.
Advertisements are allowed to be displayed on 1,500 buses, and according to Bharath, tender has been opened for advertisements on 1,500 more buses. He said provisions have been made for 200 additional stalls to be allotted at bus stands.
“Even with the loss incurred due to different reasons including Covid-induced lockdown, the burden is not transferred to passengers and the bus fare has not been increased. After a gap of two years, good business is expected during the festive season of October this year,” Bharath said.